If the quantity of hamburgers is measured along the horizontal axis and the quantity of movies is measured along the vertical axis, an increase in the price of a movie would be shown by
A. making the budget constraint steeper.
B. rotating the budget constraint around the horizontal intercept such that the new vertical intercept is closer to the origin.
C. shifting the budget constraint in towards the origin.
D. shifting the budget constraint out.
Answer: B
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A market in which the entire demand for a good or service can be satisfied at the least cost by a single firm is a:
A. horizontal market. B. natural monopoly. C. contestable market. D. perfect market.
Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?
A) purchases of corporate stock B) inventory investment C) fixed investment D) spending on capital goods
If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then:
a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged.
If the prices of both goods and income increase by the same percentage, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts outward without a change in slope. D) Nothing.